For those prices referring to the Industrial Products $2.50 mileage-based fuel program where the average price of a gallon of U.S. Diesel exceeds $2.50 per gallon, the fuel surcharge per car will be $0.01 per mile of the line-haul movement for every $0.04 per gallon, or portion thereof. The surcharge will be based on the average monthly price of a gallon of U.S. Diesel (On-Highway) (“OHD”), published by the U.S. Energy Information Administration (https://www.eia.gov).

The current fuel adjustment to be applied is $0.20 mile effective January 1, 2019 and was calculated from the average OHD (on-highway diesel) price for November 2018. The surcharge will be $0.16 mile for February 2019 based on the average OHD for December 2018.

Fuel Surcharge Effective Date

Surcharge Amount

Avg. Monthly OHD

(On-Highway Diesel)

Basis Month

12/01/2018

$0.22

$3.365

October 2018

01/01/201

$0.20

$3.300

November 2018

02/01/2019

$0.16

$3.123

December 2018

The applicable fuel surcharge shall be applied to each shipment having a bill of lading dated on or after the first day of the second calendar month of a given OHD average price calculation. The fuel surcharge will change monthly per the table below.

Calendar Month of OHD Average Price

Fuel Surcharge Applied

January

March 1

February

April 1

March

May 1

April

June 1

May

July 1

June

August 1

July

September 1

August

October 1

September

November 1

October

December 1

November

January 1

December

February 1

In the event the OHD Average Price exceeds $2.50 per gallon, the fuel surcharge per car will be $0.01 per mile of the line-haul movement for every $0.04 per gallon, or portion thereof, by which the OHD average price exceeds $2.50 per gallon. If the U.S. Energy Information Administration ceases publication of the OHD Average Price under any name, NS will endeavor to obtain the same information from another public source and, if such information is not available from any public source, will employ a suitable substitute source of price or measure.

The following schedule reflects the applicable fuel surcharge within the OHD Average Price ranges noted below. Should the OHD Average Price change to a level not included in the table, the calculation formula described in the preceding paragraph will apply in determining the applicable index amount per mile.

OHD Average Price/Gallon

Fuel Surcharge $/Mile

$2.509 and Below

None

$2.51-$2.549

$0.01

$2.55-$2.589

$0.02

$2.59-$2.629

$0.03

$2.63-$2.669

$0.04

$2.67-$2.709

$0.05

$2.71-$2.749

$0.06

$2.75-$2.789

$0.07

$2.79-$2.829

$0.08

$2.83 and Above

$ *

*The fuel surcharge will be $0.08 per line-haul mile plus an additional $0.01 per line-haul mile for every $0.04 per gallon, or portion thereof, by which the OHD Average Price exceeds $2.829.

Mileage will be determined using ALK PC*Miler|Rail Fuel Mileage as adjusted from time to time and as reflected in NS’s records on the date of determination of the applicable fuel surcharge, which may include a lag between the time the latest version of ALK PC*Miler|Rail Fuel Mileage is published and the date on which NS adopts the newly published rates into its records for use in connection with its fuel surcharge programs.

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